The Trust Document is Signed — Now what?
The signing of a Trust document is the start of a new process. A Trust isn’t just a “form.” It’s a legal structure with real consequences that has to be handled carefully in order to assure that the trust creator’s purposes can be achieved. If the Trustee uses the Trust’s funds in ways that aren’t...
The new New Jersey Uniform Trust Code and Special Needs Trusts
The new uniform trust code which goes into effect in New Jersey on July 17th has a section dedicated to “special needs trusts.” See NJSA 3B:31-37. The section concerns both first-party trusts (often called “Special Needs Trusts” or even “d(4)a trusts,” referring to the section of federal Medicaid law which authorizes them) and third party trusts (often...
A Trust Protector watches out for a Beneficiary’s best interests
When assets are placed into a Trust for benefit of someone (called the “beneficiary”), the terms of the Trust provide the guidance for what the Trustee can do or not do. The Trust’s terms may be broad and vague, or they may be quite explicit. More often than not, the Beneficiary is dependent upon the exercise of discretion by the Trustee, and cannot compel a distribution....
Trust Reformation? What’s that?
Trusts are prepared with an eye toward longevity. A trust is designed to protect assets for benefit of a beneficiary, both now and for the future. The Trust will specify who will manage it now (the Trustee) and will typically contain a list of successor trustees who can step in later if necessary, and a mechanism for someone to appoint a successor Trustee if there ever is an unfilled vacancy....
Family estate planning to protect children with disabilities
When it comes to designing an estate plan there is no “one size fits all” because each family is unique. You may have a young adult child with profound disabilities who will never be self sufficient and will require extensive support. Or you may have a child who is developing a certain degree of independence with work activity or ability to live outside your home despite their...
Not all Discretionary Trusts are Special Needs Trusts
Over the years in my practice I have encountered many situations in which a discretionary trust was written into a Will to receive the inheritance of a person who had disabilities. Often the testator (person who was signing the Will) specifically wanted to protect the funds becuse they knew the person with disabilities relied on government programs like Medicaid or SSI. However, since the...